Off-plan property is a type of property which is either still in the construction stage, or for which construction hasn’t begun at all. These types of properties are becoming more and more popular with investors who see the potential behind them and are definitely worth considering if you’re about to join the property ladder. If you’re keen to find out more about why these types of properties should be your next investment move, read these benefits of investing in off-plan.
With off-plan properties, you can often expect to get the property at the lowest price. Developers tend to offer off-plan properties at a lower price compared to properties that are already under construction to try and entice investors. RW Invest is an example of a property investment company that offers a number of off-plan properties, with impressive prices from as low as £45,450. Better yet, developers of off-plan properties often offer a 10-year warranty on the building, and investors often have a longer time frame to pay the full amount. Investors will often only need to pay a deposit for the property which is due with a portion of the funds within 21 days, whereas the remaining percentage won’t be due until after the property is completed.
Strong capital growth
Because an off-plan property isn’t yet completed, there’s a chance that the property could grow in value before it’s even readily available to tenants. If your property is being constructed in an area that already has a lot of capital growth potential such as Liverpool or Manchester, the chances are that your off-plan property will grow in capital appreciation by the time it’s ready for tenancy.
Popularity with tenants
Off-plan properties are known to be popular with tenants who like the idea of being the first to live in a property. The fact that off-plan properties are new builds also makes them attractive to tenants, readily available with modern designs and fixtures, and with less likelihood of needing repairs and redecoration. New build properties are also known to be more energy efficient than older buildings, making them appealing to tenants that are conscious of environmental issues. Over 96% of properties built in the last decade are rated an A-C grade for energy efficiency, whilst only 2% of older builds have this rating. New builds are also significantly more cost effective to run, with new build buyers saving around £52 a month on average when it comes to energy bills.
You can be more selective
One of the best things about investing in off-plan property is the fact that you can have more freedom to choose the ‘best of the bunch’ of the properties available. If you’re investing in a new development of apartments, for instance, you’ll be able to choose the best apartment in the building to invest in, being selective on aspects such as views, size and layout.
Published by Lavismichel Inkel